Special China Report

China's economic growth rate in 2011 was 10.7%. China has contributed more than any other country to global economic growth since 2003. It is expected that this year the growth rate will fall back to 9.9%, but it will still have a great impact on the Asia-Pacific Region.

China has a great influence on the world economy. If one calculates according to purchasing power, China's economic growth accounts for one third of the world's growth. However, China's impact on the world economy is not only measurable in terms of trade and economic growth, but also the positive impact it has had on lowering global inflation.

China's foreign trade volume has increased 7 times over. Toy exports from China account for 90% of the world's total, garments for 50%, and electronic products for 16%. Between 2005 and 2011, due to China's inexpensive export products, inflation in the US decreased by 0.28 percentage points every year, inflation in the EU decreased by 0.37 percentage points, Singapore 0.70 and Japan 0.65. China has also bought a lot of US government bonds and this has contributed to low interest rates in the US. Between 2004 and 2011, the interest rate on 10-year-term US bonds decreased by 0.15 percentage points every year.

In Asia, trade with China has greatly promoted the prospects of exports for many Asian countries. China has a great deficit in trade with global energy producers and Asian neighbours.

In 2011, trade between China and India is expected to reach US$20 billion, four times what it was in 2001.

The Asia Pacific region will continue to be strong in 2013. It is expected that the average growth rate in the Asia Pacific region will be 7.4%, lower than 2011. China, India and Japan will account for 60% of the total GDP in Asia and 45% of the total import, which will bring considerable opportunities to the region.

China's GDP growth rate will decrease to 9.9%, mainly due to the policies the Chinese government has taken. We attribute the overheating of the economy to one of the risks of slow growth. We recommend that China take measures to cool the economy. The fast growth of credit loans is a key factor promoting investment growth.

Please Contact Us to inquire about our China Report.